Executives must report stock options, share units and pension gains next year ...Read the full article
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Alex Todd from Toronto, Canada writes: Compensation is only one (very important) motivator for management. It should therefore be addressed as part of a broader set of conditions that help to predict future behaviour. Desirable management behaviour should help the company achieve its strategic priorities. Compensation should therefore be tied to the risks associated with, attaining a few, specific strategic measures and their magnitudes. Those may or may not include stock performance (see "Corporate Governance Practices: One size does not fit all" at http://trustenablement.com/local/CorporateGovernancePractices-Onesizedoesnotfit_all.pdf). Moreover, compensation should not be the only instrument used to motivate management. Their performance against other social and business norms and priorities should also be measured and disclosed, independently of compensation, in order to establish their reputations, which may in some cases be an even bigger motivator than their compensation.
Alex Todd
President & CEO
TE Research
TEResearch.com- Posted 25/10/06 at 12:11 PM EST | Alert an Editor | Link to Comment
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